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Shouldice Hospital Operations Management

Autor:   •  January 21, 2019  •  Case Study  •  754 Words (4 Pages)  •  52 Views

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   SHOULDICE HOSPITAL CASE STUDY

OPERATIONS MANAGEMENT

Term 2 (PGP 2018-20)

By

DIPANKAR DAS (1810019)

NAVEEN KUMAR ALLU (1810030)

PEDDINTI LAXMIKANT (1810033)

PRIYANKA SINGH (1810036)

SUTHESH K (1810050)

(Group 10    Section A)

[pic 1]

                               INDIAN INSTITUTE OF MANAGEMENT, VISAKHAPATNAM

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Table of Contents

Introduction        1

Process Flow at Shouldice Hospital        1

Available Options to Expand the Capacity and Reduce Misapplication of Shouldice’s Technique        2

Option1: Should they start operating on Saturdays?        2

Option 2: Addition of floor to the hospital        3

Option 3: Franchise other locations or diversify into other specialties        4

Recommendations        4

        


Introduction

Shouldice Hospital, located in the outskirts of Toronto is a healthcare facility reputed for using unique surgical procedure to treat hernias, therefore, considered to be superior to its competitors. With the capacity of 89 beds, 6500+ surgeries are successfully performed each year. It differentiates itself by leveraging high utilization of its human capital and facilities ranging from dining to recreational amenities. Additionally, the gross recurrence rate for all operations performed at Shouldice was 0.8%. Shouldice also manages to keep operating costs low by keeping capital investment in rooms and equipment’s very low.

 

Process Flow at Shouldice Hospital        

                     

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Available Options to Expand the Capacity and Reduce Misapplication of Shouldice’s Technique

Option1: Should they start operating on Saturdays?

Operations per year

6850

Capacity increase – 20%

1370

Revenue generated

1370*1029

 

1409730

Operating cost per operation

585

Total operating cost

1370*585

 

801450

Total profit

608280

So, by operating on Saturdays, we can make profit of $608280, which can then be used for expansion of the hospital or clinic. This can be a short-term solution for making profits and meeting the demand especially with the peak activity in September.

Cons

  • Maintenance of proper control
  • Difficult to maintain working relationship and attitudes
  • Staffs and doctors may demand a higher pay

Option 2: Addition of floor to the hospital

Operating Costs:

Hospital costs - $2.8 million

Clinic costs - $2 million

...

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